PRESS RELEASE: Barminco is a specialist underground hard-rock mining contractor with operations predominantly in Australia as well as in Africa (through the AUMS joint venture with Ausdrill), Egypt and India.
Ausdrill stated that the acquisition is strategically, operationally and financially compelling as it would create Australia's second largest mining services company. It is also expected to strengthen Ausdrill's position in the S&P/ASX200 index and to result in a lower capital intensity, higher return business.
In order to reduce pro-forma gearing and facilitate the repayment of Ausdrill's Senior Unsecured Notes due November 2019, Ausdrill will undertake a fully underwritten 1 for 2.13 pro rata accelerated non-renounceable entitlement offer to raise approximately A$250 million (US$180.5 million) before costs.
Ian Cochrane, executive chairman of Ausdrill, said: "Ausdrill is pleased to present its shareholders with this transformational opportunity. We have delivered operationally in FY18 and the Barminco transaction would broaden our strategic footprint to be Australia's clear #2 mining services company and set in place a balance sheet with the capacity to achieve sustainable and profitable growth."